How much of Cox Communications stake in Travel Channel is Scripps buying?
Scripps Networks Interactive Inc. (SNI) will take a 65% stake in Cox Communications Inc.’s (COX) Travel Channel by January as part of a venture between the two companies, in a deal that values the cable-television network at $975 million. Scripps will inject $181 million into a new partnership and take on $878 million in third-party debt, which will be guaranteed by Scripps and indemnified by Cox. The joint venture will end up with about $696 million in net debt. Scripps, owner of HGTV and the Food Network as well as Web sites Shopzilla and uSwitch, had taken the lead in talks to buy the channel as competitor News Corp. (NWS/NWSA) balked at the prices being discussed. News Corp. owns Dow Jones, the publisher of this newswire. Scripps Networks Interactive will control the joint venture and run the network as part of its lifestyle media brands. Like other media companies, Scripps has faced a drop in advertising dollars, though it has relied on strong affliate fee revenue to offset the wo
